UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05262
MFS SERIES TRUST VIII
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2021
ITEM 1. | REPORTS TO STOCKHOLDERS. |
Item 1(a): |
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back cover |
Alphabet, Inc., “A” | 6.4% |
Microsoft Corp. | 5.4% |
Accenture PLC, “A” | 2.7% |
Apple, Inc. | 2.5% |
Canadian Pacific Railway Ltd. | 2.3% |
Alibaba Group Holding Ltd. | 2.3% |
Tencent Holdings Ltd. | 2.2% |
ICON PLC | 2.1% |
Dollarama, Inc. | 2.1% |
American Tower Corp., REIT | 1.9% |
Information Technology | 23.6% |
Health Care | 14.6% |
Consumer Discretionary | 14.1% |
Communication Services | 12.9% |
Consumer Staples | 11.0% |
Industrials | 9.5% |
Financials | 9.2% |
Real Estate | 1.9% |
Materials | 1.6% |
Utilities | 0.6% |
United States | 64.5% |
Canada | 5.7% |
China | 5.5% |
Switzerland | 4.6% |
United Kingdom | 4.4% |
Ireland | 2.9% |
South Korea | 2.2% |
Japan | 2.1% |
France | 1.9% |
Other Countries | 6.2% |
United States Dollar | 70.0% |
British Pound Sterling | 5.2% |
Swiss Franc | 4.6% |
Hong Kong Dollar | 4.5% |
Euro | 4.4% |
Canadian Dollar | 3.1% |
South Korean Won | 2.2% |
Japanese Yen | 2.1% |
Indian Rupee | 1.6% |
Other Currencies | 2.3% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(x) | Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents. |
(y) | Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents. |
Jeffrey Constantino and Joseph Skorski
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) |
A | 11/18/93 | 32.88% | 18.43% | 13.25% | N/A |
B | 11/18/93 | 31.86% | 17.53% | 12.39% | N/A |
C | 1/03/94 | 31.89% | 17.53% | 12.40% | N/A |
I | 1/02/97 | 33.19% | 18.71% | 13.52% | N/A |
R1 | 4/01/05 | 31.89% | 17.54% | 12.39% | N/A |
R2 | 10/31/03 | 32.52% | 18.12% | 12.96% | N/A |
R3 | 4/01/05 | 32.86% | 18.42% | 13.24% | N/A |
R4 | 4/01/05 | 33.19% | 18.71% | 13.52% | N/A |
R6 | 3/01/13 | 33.30% | 18.80% | N/A | 13.47% |
MSCI All Country World Growth Index (net div) (f) | 34.69% | 19.86% | 14.17% | N/A |
A With Initial Sales Charge (5.75%) | 25.24% | 17.03% | 12.58% | N/A |
B With CDSC (Declining over six years from 4% to 0%) (v) | 27.86% | 17.32% | 12.39% | N/A |
C With CDSC (1% for 12 months) (v) | 30.89% | 17.53% | 12.40% | N/A |
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
(e) | Morgan Stanley Capital International (“MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. |
May 1, 2021 through October 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 5/01/21 | Ending Account Value 10/31/21 | Expenses Paid During Period (p) 5/01/21-10/31/21 | |
A | Actual | 1.22% | $1,000.00 | $1,059.62 | $6.33 |
Hypothetical (h) | 1.22% | $1,000.00 | $1,019.06 | $6.21 | |
B | Actual | 1.97% | $1,000.00 | $1,055.56 | $10.21 |
Hypothetical (h) | 1.97% | $1,000.00 | $1,015.27 | $10.01 | |
C | Actual | 1.97% | $1,000.00 | $1,055.53 | $10.21 |
Hypothetical (h) | 1.97% | $1,000.00 | $1,015.27 | $10.01 | |
I | Actual | 0.97% | $1,000.00 | $1,060.89 | $5.04 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,020.32 | $4.94 | |
R1 | Actual | 1.97% | $1,000.00 | $1,055.67 | $10.21 |
Hypothetical (h) | 1.97% | $1,000.00 | $1,015.27 | $10.01 | |
R2 | Actual | 1.47% | $1,000.00 | $1,058.10 | $7.63 |
Hypothetical (h) | 1.47% | $1,000.00 | $1,017.80 | $7.48 | |
R3 | Actual | 1.22% | $1,000.00 | $1,059.58 | $6.33 |
Hypothetical (h) | 1.22% | $1,000.00 | $1,019.06 | $6.21 | |
R4 | Actual | 0.97% | $1,000.00 | $1,060.81 | $5.04 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,020.32 | $4.94 | |
R6 | Actual | 0.88% | $1,000.00 | $1,061.35 | $4.57 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.77 | $4.48 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.0% | ||||
Alcoholic Beverages – 3.0% | ||||
Diageo PLC | 282,151 | $ 14,024,523 | ||
Kweichow Moutai Co. Ltd. | 29,567 | 8,462,810 | ||
Pernod Ricard S.A. | 16,417 | 3,770,939 | ||
$26,258,272 | ||||
Apparel Manufacturers – 5.7% | ||||
Adidas AG | 41,784 | $ 13,684,043 | ||
Burberry Group PLC | 344,045 | 9,082,558 | ||
LVMH Moet Hennessy Louis Vuitton SE | 15,439 | 12,086,316 | ||
NIKE, Inc., “B” | 85,187 | 14,250,933 | ||
$49,103,850 | ||||
Brokerage & Asset Managers – 2.1% | ||||
Blackstone, Inc. | 23,457 | $ 3,246,918 | ||
Charles Schwab Corp. | 179,910 | 14,758,017 | ||
$18,004,935 | ||||
Business Services – 9.5% | ||||
Accenture PLC, “A” | 64,166 | $ 23,022,119 | ||
CGI, Inc. (a) | 95,882 | 8,565,541 | ||
Cognizant Technology Solutions Corp., “A” | 83,894 | 6,551,283 | ||
Equifax, Inc. | 37,501 | 10,403,902 | ||
Fidelity National Information Services, Inc. | 93,851 | 10,393,060 | ||
Fiserv, Inc. (a) | 137,551 | 13,547,398 | ||
Verisk Analytics, Inc., “A” | 41,828 | 8,795,174 | ||
$81,278,477 | ||||
Cable TV – 1.1% | ||||
Charter Communications, Inc., “A” (a) | 14,103 | $ 9,517,974 | ||
Computer Software – 7.0% | ||||
Microsoft Corp. | 138,966 | $ 46,083,905 | ||
Naver Corp. | 39,487 | 13,821,432 | ||
$59,905,337 | ||||
Computer Software - Systems – 3.1% | ||||
Apple, Inc. | 143,034 | $ 21,426,493 | ||
Samsung Electronics Co. Ltd. | 89,445 | 5,358,829 | ||
$26,785,322 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 2.1% | ||||
Otis Worldwide Corp. | 103,309 | $ 8,296,746 | ||
Sherwin-Williams Co. | 31,401 | 9,941,870 | ||
$18,238,616 | ||||
Consumer Products – 5.8% | ||||
Church & Dwight Co., Inc. | 179,390 | $ 15,671,510 | ||
Colgate-Palmolive Co. | 96,634 | 7,362,545 | ||
Estee Lauder Cos., Inc., “A” | 15,791 | 5,121,495 | ||
Kose Corp. | 97,700 | 11,306,541 | ||
Reckitt Benckiser Group PLC | 125,569 | 10,181,962 | ||
$49,644,053 | ||||
Electrical Equipment – 4.0% | ||||
Amphenol Corp., “A” | 185,426 | $ 14,235,154 | ||
Fortive Corp. | 147,680 | 11,180,853 | ||
TE Connectivity Ltd. | 61,921 | 9,040,466 | ||
$34,456,473 | ||||
Electronics – 3.1% | ||||
Analog Devices, Inc. | 45,501 | $ 7,893,968 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 98,935 | 11,248,910 | ||
Texas Instruments, Inc. | 40,534 | 7,599,314 | ||
$26,742,192 | ||||
Food & Beverages – 2.1% | ||||
Nestle S.A. | 108,303 | $ 14,291,359 | ||
PepsiCo, Inc. | 25,836 | 4,175,098 | ||
$18,466,457 | ||||
Gaming & Lodging – 0.8% | ||||
Flutter Entertainment PLC (a) | 36,198 | $ 6,833,874 | ||
General Merchandise – 2.6% | ||||
B&M European Value Retail S.A. | 522,131 | $ 4,524,609 | ||
Dollarama, Inc. | 389,647 | 17,612,196 | ||
$22,136,805 | ||||
Health Maintenance Organizations – 0.7% | ||||
Cigna Corp. | 27,345 | $ 5,841,165 | ||
Insurance – 3.1% | ||||
Aon PLC | 47,438 | $ 15,176,365 | ||
Marsh & McLennan Cos., Inc. | 68,927 | 11,497,024 | ||
$26,673,389 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Internet – 11.0% | ||||
Alibaba Group Holding Ltd. (a) | 960,072 | $ 19,863,197 | ||
Alphabet, Inc., “A” (a) | 18,683 | 55,318,869 | ||
Tencent Holdings Ltd. | 305,100 | 18,942,514 | ||
$94,124,580 | ||||
Leisure & Toys – 1.6% | ||||
Electronic Arts, Inc. | 96,489 | $ 13,532,582 | ||
Machinery & Tools – 1.5% | ||||
Daikin Industries Ltd. | 30,800 | $ 6,750,201 | ||
Schindler Holding AG | 22,351 | 5,814,775 | ||
$12,564,976 | ||||
Medical & Health Technology & Services – 2.1% | ||||
ICON PLC (a) | 63,231 | $ 18,132,754 | ||
Medical Equipment – 10.6% | ||||
Abbott Laboratories | 38,037 | $ 4,902,589 | ||
Agilent Technologies, Inc. | 35,375 | 5,571,209 | ||
Becton, Dickinson and Co. | 42,072 | 10,080,030 | ||
Boston Scientific Corp. (a) | 374,192 | 16,138,901 | ||
Danaher Corp. | 41,224 | 12,852,406 | ||
Medtronic PLC | 64,339 | 7,711,673 | ||
STERIS PLC | 37,830 | 8,842,384 | ||
Stryker Corp. | 41,636 | 11,078,090 | ||
Thermo Fisher Scientific, Inc. | 21,451 | 13,579,985 | ||
$90,757,267 | ||||
Other Banks & Diversified Financials – 6.1% | ||||
Credicorp Ltd. | 22,709 | $ 2,944,449 | ||
Credicorp Ltd. | 30,231 | 3,919,752 | ||
HDFC Bank Ltd. | 651,482 | 13,821,999 | ||
Julius Baer Group Ltd. | 71,804 | 5,190,027 | ||
Mastercard, Inc., “A” | 15,445 | 5,182,106 | ||
Moody's Corp. | 21,507 | 8,692,054 | ||
Visa, Inc., “A” | 60,235 | 12,755,966 | ||
$52,506,353 | ||||
Pharmaceuticals – 1.2% | ||||
Roche Holding AG | 28,031 | $ 10,839,204 | ||
Printing & Publishing – 0.9% | ||||
Wolters Kluwer N.V. | 74,582 | $ 7,814,690 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Railroad & Shipping – 2.6% | ||||
Canadian National Railway Co. | 17,493 | $ 2,324,994 | ||
Canadian Pacific Railway Ltd. | 258,052 | 19,973,225 | ||
$22,298,219 | ||||
Restaurants – 0.9% | ||||
Starbucks Corp. | 70,585 | $ 7,486,951 | ||
Specialty Chemicals – 0.4% | ||||
Sika AG | 10,587 | $ 3,584,502 | ||
Specialty Stores – 1.8% | ||||
Ross Stores, Inc. | 75,107 | $ 8,502,112 | ||
TJX Cos., Inc. | 105,481 | 6,907,951 | ||
$15,410,063 | ||||
Telecommunications - Wireless – 1.9% | ||||
American Tower Corp., REIT | 57,596 | $ 16,240,344 | ||
Utilities - Electric Power – 0.6% | ||||
Xcel Energy, Inc. | 78,644 | $ 5,079,616 | ||
Total Common Stocks (Identified Cost, $501,719,471) | $850,259,292 | |||
Investment Companies (h) – 0.6% | ||||
Money Market Funds – 0.6% | ||||
MFS Institutional Money Market Portfolio, 0.04% (v) (Identified Cost, $4,748,732) | 4,748,732 | $ 4,748,732 | ||
Other Assets, Less Liabilities – 0.4% | 3,456,615 | |||
Net Assets – 100.0% | $858,464,639 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $4,748,732 and $850,259,292, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $501,719,471) | $850,259,292 |
Investments in affiliated issuers, at value (identified cost, $4,748,732) | 4,748,732 |
Cash | 1,750,562 |
Receivables for | |
Investments sold | 14,505,542 |
Fund shares sold | 894,857 |
Interest and dividends | 1,322,350 |
Other assets | 31 |
Total assets | $873,481,366 |
Liabilities | |
Payable to custodian | $14,461 |
Payables for | |
Investments purchased | 13,289,365 |
Fund shares reacquired | 852,779 |
Payable to affiliates | |
Investment adviser | 837 |
Administrative services fee | 1,343 |
Shareholder servicing costs | 143,133 |
Distribution and service fees | 13,553 |
Payable for independent Trustees' compensation | 50 |
Deferred country tax expense payable | 576,537 |
Accrued expenses and other liabilities | 124,669 |
Total liabilities | $15,016,727 |
Net assets | $858,464,639 |
Net assets consist of | |
Paid-in capital | $461,306,669 |
Total distributable earnings (loss) | 397,157,970 |
Net assets | $858,464,639 |
Shares of beneficial interest outstanding | 12,895,090 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $391,787,031 | 5,942,049 | $65.93 |
Class B | 4,536,842 | 82,054 | 55.29 |
Class C | 17,013,194 | 311,909 | 54.55 |
Class I | 126,592,899 | 1,862,986 | 67.95 |
Class R1 | 766,052 | 14,077 | 54.42 |
Class R2 | 4,491,428 | 71,065 | 63.20 |
Class R3 | 4,914,952 | 74,903 | 65.62 |
Class R4 | 2,152,959 | 32,479 | 66.29 |
Class R6 | 306,209,282 | 4,503,568 | 67.99 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $69.95 [100 / 94.25 x $65.93]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $9,530,668 |
Other | 38,310 |
Dividends from affiliated issuers | 4,339 |
Income on securities loaned | 990 |
Foreign taxes withheld | (390,216) |
Total investment income | $9,184,091 |
Expenses | |
Management fee | $7,122,627 |
Distribution and service fees | 1,158,179 |
Shareholder servicing costs | 573,475 |
Administrative services fee | 112,221 |
Independent Trustees' compensation | 13,389 |
Custodian fee | 101,223 |
Shareholder communications | 58,510 |
Audit and tax fees | 89,097 |
Legal fees | 4,591 |
Miscellaneous | 184,987 |
Total expenses | $9,418,299 |
Fees paid indirectly | (22) |
Reduction of expenses by investment adviser and distributor | (796,478) |
Net expenses | $8,621,799 |
Net investment income (loss) | $562,292 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $56,060,738 |
Foreign currency | (70,140) |
Net realized gain (loss) | $55,990,598 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $390,701 increase in deferred country tax) | $154,888,209 |
Translation of assets and liabilities in foreign currencies | 357 |
Net unrealized gain (loss) | $154,888,566 |
Net realized and unrealized gain (loss) | $210,879,164 |
Change in net assets from operations | $211,441,456 |
Year ended | ||
10/31/21 | 10/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $562,292 | $384,486 |
Net realized gain (loss) | 55,990,598 | 21,204,612 |
Net unrealized gain (loss) | 154,888,566 | 42,327,587 |
Change in net assets from operations | $211,441,456 | $63,916,685 |
Total distributions to shareholders | $(22,314,557) | $(11,012,322) |
Change in net assets from fund share transactions | $40,081,037 | $55,938,114 |
Total change in net assets | $229,207,936 | $108,842,477 |
Net assets | ||
At beginning of period | 629,256,703 | 520,414,226 |
At end of period | $858,464,639 | $629,256,703 |
Class A | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $51.22 | $46.53 | $40.55 | $40.66 | $32.89 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.04) | $(0.01) | $0.10 | $0.09 | $0.10(c) |
Net realized and unrealized gain (loss) | 16.54 | 5.62 | 7.73 | 1.27 | 8.21 |
Total from investment operations | $16.50 | $5.61 | $7.83 | $1.36 | $8.31 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $(0.04) | $(0.04) | $(0.07) | $(0.02) |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.79) | $(0.92) | $(1.85) | $(1.47) | $(0.54) |
Net asset value, end of period (x) | $65.93 | $51.22 | $46.53 | $40.55 | $40.66 |
Total return (%) (r)(s)(t)(x) | 32.86 | 12.17 | 20.28 | 3.38 | 25.70(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 1.32 | 1.36 | 1.38 | 1.39 | 1.38(c) |
Expenses after expense reductions (f) | 1.22 | 1.21 | 1.31 | 1.37 | 1.33(c) |
Net investment income (loss) | (0.06) | (0.03) | 0.23 | 0.21 | 0.29(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $391,787 | $290,411 | $283,181 | $214,801 | $203,117 |
Class B | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $43.53 | $39.93 | $35.28 | $35.76 | $29.18 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.42) | $(0.32) | $(0.20) | $(0.20) | $(0.15)(c) |
Net realized and unrealized gain (loss) | 13.97 | 4.80 | 6.66 | 1.12 | 7.25 |
Total from investment operations | $13.55 | $4.48 | $6.46 | $0.92 | $7.10 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $— | $— | $— | $— |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.79) | $(0.88) | $(1.81) | $(1.40) | $(0.52) |
Net asset value, end of period (x) | $55.29 | $43.53 | $39.93 | $35.28 | $35.76 |
Total return (%) (r)(s)(t)(x) | 31.86 | 11.34 | 19.36 | 2.58 | 24.78(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 2.07 | 2.11 | 2.13 | 2.14 | 2.13(c) |
Expenses after expense reductions (f) | 1.97 | 1.97 | 2.08 | 2.13 | 2.08(c) |
Net investment income (loss) | (0.82) | (0.78) | (0.54) | (0.55) | (0.46)(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $4,537 | $4,277 | $4,928 | $5,020 | $5,097 |
Class C | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $42.96 | $39.42 | $34.85 | $35.34 | $28.85 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.41) | $(0.32) | $(0.20) | $(0.20) | $(0.14)(c) |
Net realized and unrealized gain (loss) | 13.79 | 4.74 | 6.58 | 1.11 | 7.15 |
Total from investment operations | $13.38 | $4.42 | $6.38 | $0.91 | $7.01 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $— | $— | $— | $— |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.79) | $(0.88) | $(1.81) | $(1.40) | $(0.52) |
Net asset value, end of period (x) | $54.55 | $42.96 | $39.42 | $34.85 | $35.34 |
Total return (%) (r)(s)(t)(x) | 31.89 | 11.33 | 19.37 | 2.58 | 24.75(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 2.07 | 2.11 | 2.13 | 2.14 | 2.13(c) |
Expenses after expense reductions (f) | 1.97 | 1.97 | 2.07 | 2.13 | 2.08(c) |
Net investment income (loss) | (0.81) | (0.78) | (0.55) | (0.55) | (0.45)(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $17,013 | $14,222 | $13,332 | $8,857 | $13,743 |
Class I | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $52.63 | $47.77 | $41.58 | $41.64 | $33.68 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.12 | $0.09 | $0.25 | $0.19 | $0.26(c) |
Net realized and unrealized gain (loss) | 17.01 | 5.79 | 7.89 | 1.29 | 8.34 |
Total from investment operations | $17.13 | $5.88 | $8.14 | $1.48 | $8.60 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.02) | $(0.14) | $(0.14) | $(0.14) | $(0.12) |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.81) | $(1.02) | $(1.95) | $(1.54) | $(0.64) |
Net asset value, end of period (x) | $67.95 | $52.63 | $47.77 | $41.58 | $41.64 |
Total return (%) (r)(s)(t)(x) | 33.19 | 12.45 | 20.58 | 3.60 | 26.03(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 1.07 | 1.10 | 1.13 | 1.14 | 1.14(c) |
Expenses after expense reductions (f) | 0.97 | 0.97 | 1.06 | 1.13 | 1.10(c) |
Net investment income (loss) | 0.19 | 0.17 | 0.56 | 0.44 | 0.70(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $126,593 | $98,214 | $83,727 | $22,537 | $17,272 |
Class R1 | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $42.86 | $39.33 | $34.78 | $35.27 | $28.79 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.40) | $(0.32) | $(0.18) | $(0.20) | $(0.15)(c) |
Net realized and unrealized gain (loss) | 13.75 | 4.73 | 6.54 | 1.11 | 7.15 |
Total from investment operations | $13.35 | $4.41 | $6.36 | $0.91 | $7.00 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $— | $— | $— | $— |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.79) | $(0.88) | $(1.81) | $(1.40) | $(0.52) |
Net asset value, end of period (x) | $54.42 | $42.86 | $39.33 | $34.78 | $35.27 |
Total return (%) (r)(s)(t)(x) | 31.89 | 11.33 | 19.35 | 2.59 | 24.77(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 2.07 | 2.11 | 2.13 | 2.14 | 2.13(c) |
Expenses after expense reductions (f) | 1.97 | 1.97 | 2.10 | 2.13 | 2.09(c) |
Net investment income (loss) | (0.79) | (0.80) | (0.52) | (0.56) | (0.47)(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $766 | $442 | $317 | $862 | $961 |
Class R2 | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $49.29 | $44.88 | $39.24 | $39.42 | $31.97 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.18) | $(0.13) | $(0.03) | $(0.02) | $0.02(c) |
Net realized and unrealized gain (loss) | 15.88 | 5.42 | 7.48 | 1.24 | 7.95 |
Total from investment operations | $15.70 | $5.29 | $7.45 | $1.22 | $7.97 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $— | $— | $— | $— |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.79) | $(0.88) | $(1.81) | $(1.40) | $(0.52) |
Net asset value, end of period (x) | $63.20 | $49.29 | $44.88 | $39.24 | $39.42 |
Total return (%) (r)(s)(t)(x) | 32.52 | 11.90 | 19.95 | 3.12 | 25.35(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 1.57 | 1.61 | 1.63 | 1.64 | 1.63(c) |
Expenses after expense reductions (f) | 1.47 | 1.47 | 1.58 | 1.63 | 1.58(c) |
Net investment income (loss) | (0.31) | (0.27) | (0.07) | (0.05) | 0.05(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $4,491 | $3,207 | $2,202 | $2,581 | $2,887 |
Class R3 | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $50.99 | $46.29 | $40.33 | $40.46 | $32.73 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.05) | $(0.01) | $0.08 | $0.08 | $0.10(c) |
Net realized and unrealized gain (loss) | 16.47 | 5.59 | 7.71 | 1.26 | 8.17 |
Total from investment operations | $16.42 | $5.58 | $7.79 | $1.34 | $8.27 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $(0.00)(w) | $(0.02) | $(0.07) | $(0.02) |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.79) | $(0.88) | $(1.83) | $(1.47) | $(0.54) |
Net asset value, end of period (x) | $65.62 | $50.99 | $46.29 | $40.33 | $40.46 |
Total return (%) (r)(s)(t)(x) | 32.86 | 12.18 | 20.28 | 3.35 | 25.70(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 1.32 | 1.36 | 1.38 | 1.39 | 1.38(c) |
Expenses after expense reductions (f) | 1.22 | 1.22 | 1.33 | 1.38 | 1.34(c) |
Net investment income (loss) | (0.07) | (0.02) | 0.19 | 0.19 | 0.28(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $4,915 | $4,237 | $4,106 | $4,324 | $4,791 |
Class R4 | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $51.38 | $46.65 | $40.66 | $40.75 | $32.96 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.11 | $0.11 | $0.21 | $0.19 | $0.20(c) |
Net realized and unrealized gain (loss) | 16.60 | 5.64 | 7.73 | 1.27 | 8.21 |
Total from investment operations | $16.71 | $5.75 | $7.94 | $1.46 | $8.41 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.01) | $(0.14) | $(0.14) | $(0.15) | $(0.10) |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.80) | $(1.02) | $(1.95) | $(1.55) | $(0.62) |
Net asset value, end of period (x) | $66.29 | $51.38 | $46.65 | $40.66 | $40.75 |
Total return (%) (r)(s)(t)(x) | 33.19 | 12.47 | 20.55 | 3.62 | 26.00(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 1.07 | 1.11 | 1.13 | 1.14 | 1.13(c) |
Expenses after expense reductions (f) | 0.97 | 0.97 | 1.06 | 1.13 | 1.09(c) |
Net investment income (loss) | 0.18 | 0.22 | 0.49 | 0.46 | 0.55(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $2,153 | $1,613 | $1,662 | $484 | $559 |
Class R6 | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $52.65 | $47.77 | $41.59 | $41.65 | $33.68 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.17 | $0.14 | $0.23 | $0.23 | $0.11(c) |
Net realized and unrealized gain (loss) | 17.01 | 5.78 | 7.93 | 1.30 | 8.51 |
Total from investment operations | $17.18 | $5.92 | $8.16 | $1.53 | $8.62 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.05) | $(0.16) | $(0.17) | $(0.19) | $(0.13) |
From net realized gain | (1.79) | (0.88) | (1.81) | (1.40) | (0.52) |
Total distributions declared to shareholders | $(1.84) | $(1.04) | $(1.98) | $(1.59) | $(0.65) |
Net asset value, end of period (x) | $67.99 | $52.65 | $47.77 | $41.59 | $41.65 |
Total return (%) (r)(s)(t)(x) | 33.30 | 12.54 | 20.64 | 3.71 | 26.09(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f) | 0.99 | 1.03 | 1.05 | 1.07 | 1.09(c) |
Expenses after expense reductions (f) | 0.89 | 0.89 | 0.99 | 1.06 | 1.05(c) |
Net investment income (loss) | 0.27 | 0.28 | 0.53 | 0.53 | 0.28(c) |
Portfolio turnover | 22 | 39 | 21 | 22 | 27 |
Net assets at end of period (000 omitted) | $306,209 | $212,634 | $126,958 | $68,931 | $48,429 |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $545,486,567 | $— | $— | $545,486,567 |
Canada | 48,475,956 | — | — | 48,475,956 |
China | — | 47,268,521 | — | 47,268,521 |
Switzerland | 39,719,867 | — | — | 39,719,867 |
United Kingdom | 37,813,652 | — | — | 37,813,652 |
Ireland | 24,966,628 | — | — | 24,966,628 |
South Korea | — | 19,180,261 | — | 19,180,261 |
Japan | 11,306,541 | 6,750,201 | — | 18,056,742 |
France | 15,857,255 | — | — | 15,857,255 |
Other Countries | 39,611,844 | 13,821,999 | — | 53,433,843 |
Mutual Funds | 4,748,732 | — | — | 4,748,732 |
Total | $767,987,042 | $87,020,982 | $— | $855,008,024 |
Year ended 10/31/21 | Year ended 10/31/20 | |
Ordinary income (including any short-term capital gains) | $256,496 | $2,825,280 |
Long-term capital gains | 22,058,061 | 8,187,042 |
Total distributions | $22,314,557 | $11,012,322 |
As of 10/31/21 | |
Cost of investments | $509,102,609 |
Gross appreciation | 351,773,075 |
Gross depreciation | (5,867,660) |
Net unrealized appreciation (depreciation) | $345,905,415 |
Undistributed ordinary income | 5,593,687 |
Undistributed long-term capital gain | 45,622,682 |
Other temporary differences | 36,186 |
Total distributable earnings (loss) | $397,157,970 |
Year ended 10/31/21 | Year ended 10/31/20 | ||
Class A | $10,203,215 | $5,586,228 | |
Class B | 173,880 | 105,770 | |
Class C | 593,561 | 300,691 | |
Class I | 3,425,408 | 1,892,782 | |
Class R1 | 18,956 | 7,137 | |
Class R2 | 118,556 | 42,751 | |
Class R3 | 150,265 | 76,270 | |
Class R4 | 56,587 | 37,754 | |
Class R6 | 7,574,129 | 2,962,939 | |
Total | $22,314,557 | $11,012,322 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.75% |
In excess of $2 billion | 0.65% |
Classes | ||||||||
A | B | C | I | R1 | R2 | R3 | R4 | R6 |
1.22% | 1.97% | 1.97% | 0.97% | 1.97% | 1.47% | 1.22% | 0.97% | 0.90% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 906,135 |
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 47,250 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 166,747 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 6,455 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 19,117 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 12,475 |
Total Distribution and Service Fees | $1,158,179 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended October 31, 2021 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for |
Amount | |
Class A | $8,275 |
Class B | 1,377 |
Class C | 1,292 |
Year ended 10/31/21 | Year ended 10/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 821,264 | $49,225,929 | 1,098,934 | $52,211,516 | |
Class B | 2,848 | 141,892 | 4,555 | 188,257 | |
Class C | 49,729 | 2,451,154 | 83,107 | 3,324,862 | |
Class I | 480,043 | 29,475,683 | 1,690,731 | 82,177,571 | |
Class R1 | 5,406 | 267,847 | 2,146 | 88,164 | |
Class R2 | 20,441 | 1,229,491 | 29,310 | 1,320,650 | |
Class R3 | 10,231 | 604,811 | 28,800 | 1,216,184 | |
Class R4 | 6,867 | 409,139 | 9,023 | 434,502 | |
Class R6 | 1,496,168 | 93,197,676 | 2,146,974 | 104,252,611 | |
2,892,997 | $177,003,622 | 5,093,580 | $245,214,317 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 174,579 | $9,697,846 | 110,707 | $5,320,567 | |
Class B | 3,644 | 170,911 | 2,537 | 104,319 | |
Class C | 12,673 | 586,230 | 7,268 | 294,937 | |
Class I | 59,604 | 3,404,605 | 38,246 | 1,884,757 | |
Class R1 | 411 | 18,956 | 176 | 7,137 | |
Class R2 | 2,187 | 116,712 | 810 | 37,550 | |
Class R3 | 2,718 | 150,265 | 1,594 | 76,270 | |
Class R4 | 972 | 54,139 | 766 | 36,834 | |
Class R6 | 125,531 | 7,170,353 | 54,984 | 2,708,490 | |
382,319 | $21,370,017 | 217,088 | $10,470,861 |
Year ended 10/31/21 | Year ended 10/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Class A | (723,165) | $(43,994,460) | (1,626,690) | $(76,399,178) | |
Class B | (22,700) | (1,168,526) | (32,249) | (1,310,656) | |
Class C | (81,516) | (4,090,913) | (97,548) | (3,936,988) | |
Class I | (542,746) | (33,815,783) | (1,615,634) | (75,051,948) | |
Class R1 | (2,062) | (101,675) | (69) | (2,787) | |
Class R2 | (16,625) | (949,459) | (14,131) | (668,255) | |
Class R3 | (21,154) | (1,271,586) | (36,003) | (1,757,724) | |
Class R4 | (6,755) | (408,953) | (14,010) | (648,509) | |
Class R6 | (1,156,517) | (72,491,247) | (821,091) | (39,971,019) | |
(2,573,240) | $(158,292,602) | (4,257,425) | $(199,747,064) | ||
Net change | |||||
Class A | 272,678 | $14,929,315 | (417,049) | $(18,867,095) | |
Class B | (16,208) | (855,723) | (25,157) | (1,018,080) | |
Class C | (19,114) | (1,053,529) | (7,173) | (317,189) | |
Class I | (3,099) | (935,495) | 113,343 | 9,010,380 | |
Class R1 | 3,755 | 185,128 | 2,253 | 92,514 | |
Class R2 | 6,003 | 396,744 | 15,989 | 689,945 | |
Class R3 | (8,205) | (516,510) | (5,609) | (465,270) | |
Class R4 | 1,084 | 54,325 | (4,221) | (177,173) | |
Class R6 | 465,182 | 27,876,782 | 1,380,867 | 66,990,082 | |
702,076 | $40,081,037 | 1,053,243 | $55,938,114 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $7,789,020 | $110,623,264 | $113,663,552 | $— | $— | $4,748,732 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $4,339 | $— |
December 15, 2021
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Robert J. Manning (k) (age 58) | Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Non-Executive Chairman (since January 2021); Director; Chairman of the Board; Executive Chairman (January 2017-2020); Co-Chief Executive Officer (2015-2016) | N/A | |||||
Michael W. Roberge (k) (age 55) | Trustee | January 2021 | 135 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; President (until December 2018); Chief Investment Officer (until December 2018); Co-Chief Executive Officer (until December 2016) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 67) | Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking, Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016) | Alpha-En Corporation, Director (2016-2019) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 47) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (until January 2017) | ||||
Brian E. Langenfeld (k) (age 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 50) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jeffrey Constantino Joseph Skorski |
FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
• Social Security number and account balances | |
• Account transactions and transaction history | |
• Checking account information and wire transfer instructions | |
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes – to offer our products and services to you | No | We don't share |
For joint marketing with other financial companies | No | We don't share |
For our affiliates' everyday business purposes – information about your transactions and experiences | No | We don't share |
For our affiliates' everyday business purposes – information about your creditworthiness | No | We don't share |
For nonaffiliates to market to you | No | We don't share |
Questions? | Call 800-225-2606 or go to mfs.com. |
Who we are | |
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | |
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. |
How does MFS collect my personal information? | We collect your personal information, for example, when you |
• open an account or provide account information | |
• direct us to buy securities or direct us to sell your securities | |
• make a wire transfer | |
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can't I limit all sharing? | Federal law gives you the right to limit only |
• sharing for affiliates' everyday business purposes – information about your creditworthiness | |
• affiliates from using your information to market to you | |
• sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
• MFS doesn't jointly market. |
Other important information |
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
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back cover |
U.S. Treasury Securities | 37.8% |
Investment Grade Corporates | 20.4% |
High Yield Corporates | 16.3% |
Collateralized Debt Obligations | 13.8% |
Commercial Mortgage-Backed Securities | 8.4% |
Emerging Markets Bonds | 7.4% |
Municipal Bonds | 1.9% |
Asset-Backed Securities | 0.5% |
Residential Mortgage-Backed Securities | 0.2% |
Mortgage-Backed Securities | 0.1% |
AAA | 6.0% |
AA | 3.3% |
A | 12.6% |
BBB | 24.9% |
BB | 13.9% |
B | 6.5% |
CCC | 1.0% |
D (o) | 0.0% |
U.S. Government | 26.7% |
Federal Agencies | 0.1% |
Not Rated | 11.8% |
Non-Fixed Income (o) | 0.0% |
Cash & Cash Equivalents | 4.2% |
Other | (11.0)% |
Average Duration (d) | 6.2 |
Average Effective Maturity (m) | 7.4 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities that are not rated by any of the rating agencies, the security is considered Not Rated. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) |
A | 10/29/87 | 2.67% | 4.42% | 4.32% | N/A |
B | 9/07/93 | 1.91% | 3.64% | 3.57% | N/A |
C | 9/01/94 | 1.91% | 3.63% | 3.57% | N/A |
I | 1/08/97 | 2.78% | 4.62% | 4.57% | N/A |
R6 | 3/02/18 | 2.87% | N/A | N/A | 5.57% |
Bloomberg U.S. Aggregate Bond Index (f) | (0.48)% | 3.10% | 3.00% | N/A |
A With Initial Sales Charge (4.25%) | (1.69)% | 3.52% | 3.87% | N/A |
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.09)% | 3.29% | 3.57% | N/A |
C With CDSC (1% for 12 months) (v) | 0.91% | 3.63% | 3.57% | N/A |
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
May 1, 2021 through October 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 5/01/21 | Ending Account Value 10/31/21 | Expenses Paid During Period (p) 5/01/21-10/31/21 | |
A | Actual | 0.73% | $1,000.00 | $1,015.45 | $3.71 |
Hypothetical (h) | 0.73% | $1,000.00 | $1,021.53 | $3.72 | |
B | Actual | 1.49% | $1,000.00 | $1,011.69 | $7.56 |
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.69 | $7.58 | |
C | Actual | 1.49% | $1,000.00 | $1,011.70 | $7.56 |
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.69 | $7.58 | |
I | Actual | 0.48% | $1,000.00 | $1,015.29 | $2.44 |
Hypothetical (h) | 0.48% | $1,000.00 | $1,022.79 | $2.45 | |
R6 | Actual | 0.39% | $1,000.00 | $1,015.74 | $1.98 |
Hypothetical (h) | 0.39% | $1,000.00 | $1,023.24 | $1.99 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Bonds – 95.3% | ||||
Aerospace & Defense – 1.3% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 2,018,000 | $ 2,021,362 | |
Boeing Co., 2.95%, 2/01/2030 | 453,000 | 458,161 | ||
Boeing Co., 5.705%, 5/01/2040 | 359,000 | 460,942 | ||
Boeing Co., 5.805%, 5/01/2050 | 349,000 | 478,516 | ||
Moog, Inc., 4.25%, 12/15/2027 (n) | 2,265,000 | 2,331,568 | ||
TransDigm, Inc., 6.375%, 6/15/2026 | 900,000 | 930,375 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 1,000,000 | 993,750 | ||
$7,674,674 | ||||
Asset-Backed & Securitized – 23.0% | ||||
ACREC 2021-FL1 Ltd., “D”, FLR, 2.735% (LIBOR - 1mo. + 2.65%), 10/16/2036 (i) | $ | 2,591,000 | $ 2,590,988 | |
Allegro CLO Ltd., 2014-1RA, “C”, FLR, 3.13% (LIBOR - 3mo. + 3%), 10/21/2028 (n) | 1,250,000 | 1,229,226 | ||
Allegro CLO Ltd., 2015-1X, “CR”, FLR, 1.774% (LIBOR - 3mo. + 1.65%), 7/25/2027 (n) | 850,000 | 850,848 | ||
Arbor Realty Trust, Inc., CLO, 2018-FL1, “A”, FLR, 1.24% (LIBOR - 1mo. + 1.15%), 6/15/2028 (n) | 1,740,000 | 1,740,508 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL1, “D”, FLR, 2.59% (LIBOR - 1mo. + 2.5%), 5/15/2037 (n) | 1,506,000 | 1,506,447 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “D”, FLR, 2.614% (LIBOR - 1mo. + 2.45%), 2/15/2035 (n) | 1,768,000 | 1,769,078 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “C”, FLR, 2.09% (LIBOR - 1mo. + 2%), 12/15/2035 (n) | 4,000,000 | 4,000,000 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 3.04% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n) | 701,000 | 702,297 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, FLR, 1.69% (LIBOR - 1mo. + 1.6%), 5/15/2036 (n) | 598,000 | 598,367 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “C”, FLR, 1.94% (LIBOR - 1mo. + 1.85%), 8/15/2034 (n) | 3,500,000 | 3,492,167 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “D”, FLR, 2.29% (LIBOR - 1mo. + 2.2%), 8/15/2034 (n) | 539,000 | 538,673 | ||
AREIT CRE Trust, 2019-CRE3, “D”, FLR, 2.815% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n) | 1,729,000 | 1,708,079 | ||
Babson CLO Ltd., 2013-IIA, “BR”, FLR, 1.382% (LIBOR - 3mo. + 1.25%), 1/20/2028 (n) | 1,750,000 | 1,749,997 | ||
Bancorp Commercial Mortgage Trust, 2018-CRE3, “D”, FLR, 2.79% (LIBOR - 1mo. + 2.7%), 1/15/2033 (n) | 1,751,843 | 1,744,467 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE5, “D”, FLR, 2.44% (LIBOR - 1mo. + 2.35%), 3/15/2036 (n) | 2,563,000 | 2,556,976 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “D”, FLR, 2.464% (LIBOR - 1mo. + 2.54%), 9/15/2036 (n) | $ | 2,044,000 | $ 2,041,627 | |
Barclays Commercial Mortgage Securities LLC, 2019-C5, “A4”, 3.063%, 11/15/2052 | 500,000 | 534,263 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.687% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 106,896 | 117,602 | ||
BSPDF 2021-FL1 Issuer Ltd., “B”, FLR, 1.885% (LIBOR - 1mo. + 1.8%), 10/15/2036 (n) | 1,231,000 | 1,231,004 | ||
BSPRT Issuer Ltd., 2019-FL5, “C”, FLR, 2.09% (LIBOR - 1mo. + 2%), 5/15/2029 (n) | 1,505,000 | 1,497,794 | ||
BSPRT Issuer Ltd., 2021-FL6, “C”, FLR, 2.14% (LIBOR - 1mo. + 2.05%), 3/15/2036 (n) | 1,300,000 | 1,300,000 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 481,698 | 484,268 | ||
Business Jet Securities LLC, 2021-1A, “C”, 5.067%, 4/15/2036 (n) | 420,217 | 423,438 | ||
BXMT Ltd., 2021-FL4, “B”, FLR, 1.636% (LIBOR - 1mo. + 1.55%), 5/15/2038 (n) | 2,123,000 | 2,122,994 | ||
Capital Automotive, 2020-1A, “B1”, REIT, 4.17%, 2/15/2050 (n) | 764,773 | 781,144 | ||
CHCP 2021-FL1 Ltd., “B”, FLR, 1.815% (LIBOR - 1mo. + 1.65%), 2/15/2038 (n) | 3,500,000 | 3,496,453 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 2.265% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n) | 549,500 | 549,761 | ||
Citigroup Commercial Mortgage Trust, 2019-C7, “A4”, 3.102%, 12/15/2072 | 2,000,000 | 2,145,591 | ||
CLNC Ltd., 2019-FL1, “C”, FLR, 2.564% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n) | 1,735,000 | 1,729,317 | ||
Columbia Cent CLO 28 Ltd., “B-R”, 2.294%, 11/07/2030 (n) | 2,083,333 | 2,083,354 | ||
Commercial Mortgage Pass-Through Certificates, 2019-BN24, “A3”, 2.96%, 11/15/2062 | 912,900 | 968,390 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 1,805,893 | 1,944,520 | ||
Crest Ltd., CDO, 7%, (0.001% cash or 7% PIK) 1/28/2040 (a)(p) | 674,459 | 7 | ||
Cutwater Ltd., 2015-1A, “BR”, FLR, 1.924% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n) | 1,500,000 | 1,483,892 | ||
Dryden Senior Loan Fund, 2017-49A, “CR”, CLO, FLR, 2.172% (LIBOR - 3mo. + 2.05%), 7/18/2030 (n) | 2,000,000 | 2,002,506 | ||
DT Auto Owner Trust, 2020-1A, “C”, 2.29%, 11/17/2025 (n) | 877,000 | 890,630 | ||
Exeter Automobile Receivables Trust, 2020-1A, 2.49%, 1/15/2025 (n) | 290,000 | 293,149 | ||
Flagship CLO, 2014-8A, “BRR”, FLR, 1.522% (LIBOR - 3mo. + 1.4%), 1/16/2026 (n) | 548,616 | 549,076 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
GS Mortgage Securities Trust, 2019-GC42, “A4”, 3.001%, 9/01/2052 | $ | 3,555,000 | $ 3,777,262 | |
GS Mortgage Securities Trust, 2019-GSA1, “A4”, 3.048%, 11/10/2052 | 1,738,278 | 1,845,717 | ||
GS Mortgage Securities Trust, 2020-GC45, “A5”, 2.95%, 2/13/2053 | 1,006,511 | 1,064,239 | ||
Invitation Homes Trust, 2018-SFR1, “C”, FLR, 1.336% (LIBOR - 1mo. + 1.25%), 3/17/2037 (n) | 869,875 | 870,614 | ||
Invitation Homes Trust, 2018-SFR2, “A”, FLR, 0.936% (LIBOR - 1mo. + 0.85%), 12/17/2036 (n) | 446,069 | 445,527 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 3.454%, 9/15/2050 | 769,436 | 830,884 | ||
KKR Real Estate Financial Trust, Inc., 2021-FL2, “D”, FLR, 2.286% (LIBOR - 1mo. + 2.2%), 2/15/2039 (n) | 1,837,000 | 1,834,682 | ||
LCCM 2021-FL2 Trust, “C”, FLR, 2.236% (LIBOR - 1mo. + 2.15%), 12/13/2038 (n) | 3,212,500 | 3,202,493 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.64% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n) | 1,740,000 | 1,731,300 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.04% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n) | 1,355,850 | 1,350,928 | ||
LoanCore Ltd., 2019-CRE2, “D”, FLR, 2.54% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n) | 1,291,000 | 1,267,354 | ||
LoanCore Ltd., 2021-CRE5, “C”, FLR, 2.44% (LIBOR - 1mo. + 2.35%), 7/15/2036 (n) | 3,000,000 | 3,000,000 | ||
Madison Park Funding Ltd., 2017- 23A, “CR”, FLR, 2.135% (LIBOR - 3mo. + 2%), 7/27/2031 (n) | 3,000,000 | 2,998,494 | ||
Magnetite CLO Ltd., 2015-16A, “DR”, FLR, 2.272% (LIBOR - 3mo. + 2.15%), 1/18/2028 (n) | 500,000 | 493,950 | ||
MF1 CLO Ltd., 2019-FL2, “A”, FLR, 2.514% (LIBOR - 1mo. + 2.35%), 12/25/2034 (n) | 2,241,000 | 2,240,332 | ||
MF1 CLO Ltd., 2021-FL5, “C”, FLR, 1.864% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n) | 2,250,000 | 2,249,307 | ||
MF1 CLO Ltd., 2021-FL6, “C”, FLR, 1.936%, 7/16/2036 (n) | 3,357,603 | 3,345,650 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, “B”, FLR, 2.914% (LIBOR - 1mo. + 2.75%), 11/15/2035 (n) | 2,250,000 | 2,272,046 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2021-FL5, “D”, FLR, 2.664% (LIBOR - 1mo. + 2.5%), 7/15/2036 (n) | 3,000,000 | 2,995,584 | ||
Morgan Stanley Capital I Trust, 2017-H1, “A5”, 3.53%, 6/15/2050 | 1,050,279 | 1,137,370 | ||
Neuberger Berman CLO Ltd., 2013-15A, “CR2”, FLR, 1.974% (LIBOR - 3mo. + 1.85%), 10/15/2029 (n) | 2,286,610 | 2,286,706 | ||
Neuberger Berman CLO Ltd., 2016-21A, “CR2”, 2.181%, 4/20/2034 (n) | 1,750,000 | 1,752,301 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Oaktree CLO Ltd., 2019-1A, “CR”, FLR, 2.478% (LIBOR - 3mo. + 2.35%), 4/22/2030 (n) | $ | 3,236,356 | $ 3,236,346 | |
OCP CLO Ltd., 2015-9A, “A2R”, FLR, 1.474% (LIBOR - 3mo. + 1.35%), 7/15/2027 (n) | 1,500,000 | 1,500,195 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “B”, FLR, 2.031% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n) | 879,778 | 863,727 | ||
Parallel Ltd., 2015-1A, “DR”, FLR, 2.681% (LIBOR - 3mo. + 2.55%), 7/20/2027 (n) | 1,750,000 | 1,754,566 | ||
PFP III Ltd., 2021-7, “C”, FLR, 1.736% (LIBOR - 1mo. + 1.65%), 4/14/2038 (n) | 431,479 | 429,356 | ||
Race Point CLO Ltd., 2013-8A, “CR2”, FLR, 2.181% (LIBOR - 3mo. + 2.05%), 2/20/2030 (n) | 1,500,000 | 1,500,242 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “C”, 2.849%, 3/25/2026 (n) | 306,669 | 310,900 | ||
Shackleton CLO Ltd., 2015-8A, “CR”, FLR, 1.781% (LIBOR - 3mo. + 1.65%), 10/20/2027 (n) | 1,000,000 | 997,520 | ||
Starwood Commercial Mortgage, 2021-FL2, “D”, 2.886%, 4/18/2038 (n) | 3,000,000 | 3,003,224 | ||
TPG Real Estate Finance, 2021-FL4, “B”, FLR, 1.935% (LIBOR - 1mo. + 1.85%), 3/15/2038 (n) | 2,700,000 | 2,692,424 | ||
UBS Commercial Mortgage Trust, 2017-C1, “A4”, 3.544%, 11/15/2050 | 2,996,753 | 3,266,863 | ||
UBS Commercial Mortgage Trust, 2017-C7, “A4”, 3.679%, 12/15/2050 | 1,052,000 | 1,151,969 | ||
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 10/15/2052 | 1,291,913 | 1,357,342 | ||
Veros Auto Receivables Trust, 2020-1, “A”, 1.67%, 9/15/2023 (n) | 92,152 | 92,257 | ||
Voya CLO Ltd., 2012-4A, “C1R3”, FLR, 3.424% (LIBOR - 3mo. + 3.3%), 10/15/2030 (n) | 1,737,638 | 1,729,904 | ||
Voya CLO Ltd., 2016-4A, “CR”, FLR, 2.282% (LIBOR - 3mo. + 2.15%), 7/20/2029 (n) | 2,909,090 | 2,907,624 | ||
Wells Fargo Commercial Mortgage Trust, 2016-C34, “A4”, 3.096%, 6/15/2049 | 1,740,000 | 1,823,074 | ||
Wells Fargo Commercial Mortgage Trust, 2017-C42, “A5”, 3.589%, 12/15/2050 | 3,490,000 | 3,817,675 | ||
Wells Fargo Commercial Mortgage Trust, 2017-RB1, 3.635%, 3/15/2050 | 1,500,000 | 1,637,490 | ||
Wells Fargo Commercial Mortgage Trust, 2018-C44, 4.212%, 5/15/2051 | 1,500,000 | 1,692,026 | ||
Wells Fargo Commercial Mortgage Trust, 2019-C54, “A4”, 3.146%, 12/15/2052 | 1,124,666 | 1,206,283 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Wind River CLO Ltd., 2015-2A, “CR”, FLR, 1.824% (LIBOR - 3mo. + 1.7%), 10/15/2027 (n) | $ | 1,360,000 | $ 1,362,018 | |
$ 136,774,663 | ||||
Automotive – 1.0% | ||||
Hyundai Capital America, 2.1%, 9/15/2028 (n) | $ | 2,000,000 | $ 1,950,310 | |
Hyundai Capital America, 6.375%, 4/08/2030 (n) | 2,250,000 | 2,853,709 | ||
Stellantis N.V., 2.691%, 9/15/2031 (n) | 1,331,000 | 1,311,040 | ||
$6,115,059 | ||||
Broadcasting – 0.5% | ||||
Discovery, Inc., 4.65%, 5/15/2050 | $ | 857,000 | $ 1,010,333 | |
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | 2,000,000 | 2,072,500 | ||
$3,082,833 | ||||
Brokerage & Asset Managers – 1.2% | ||||
E*TRADE Financial Corp., 4.5%, 6/20/2028 | $ | 1,958,000 | $ 2,229,070 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 899,000 | 891,043 | ||
LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | 2,000,000 | 2,060,000 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 600,000 | 612,000 | ||
Raymond James Financial, 4.65%, 4/01/2030 | 1,069,000 | 1,255,623 | ||
$7,047,736 | ||||
Building – 0.7% | ||||
ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 2,000,000 | $ 2,027,500 | |
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 2,600,000 | 2,410,902 | ||
$4,438,402 | ||||
Business Services – 1.3% | ||||
Global Payments, Inc., 2.9%, 5/15/2030 | $ | 1,080,000 | $ 1,101,998 | |
Iron Mountain, Inc., 4.5%, 2/15/2031 (n) | 2,700,000 | 2,727,000 | ||
NXP Semiconductors N.V., 3.4%, 5/01/2030 (n) | 1,305,000 | 1,402,468 | ||
RELX Capital, Inc., 3%, 5/22/2030 | 674,000 | 711,490 | ||
Switch Ltd., 4.125%, 6/15/2029 (n) | 1,925,000 | 1,934,625 | ||
$7,877,581 | ||||
Cable TV – 2.0% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | $ | 2,300,000 | $ 2,341,124 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.9%, 6/01/2052 | 1,824,000 | 1,845,356 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 2,500,000 | 2,393,750 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 2,000,000 | 2,157,500 | ||
Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 1,800,000 | 1,877,400 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Cable TV – continued | ||||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | $ | 1,279,000 | $ 1,398,086 | |
$12,013,216 | ||||
Chemicals – 1.0% | ||||
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | $ | 2,600,000 | $ 2,476,266 | |
Element Solutions, Inc., 3.875%, 9/01/2028 (n) | 2,600,000 | 2,597,608 | ||
Sasol Financing (USA) LLC, 4.375%, 9/18/2026 | 832,000 | 845,562 | ||
$5,919,436 | ||||
Computer Software – 0.8% | ||||
Clarivate Science Holdings Corp., 4.875%, 7/01/2029 (n) | $ | 3,000,000 | $ 2,987,100 | |
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | 1,388,000 | 1,669,556 | ||
$4,656,656 | ||||
Computer Software - Systems – 0.3% | ||||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | $ | 1,965,000 | $ 2,068,162 | |
Conglomerates – 1.5% | ||||
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | $ | 2,500,000 | $ 2,531,250 | |
EnerSys, 4.375%, 12/15/2027 (n) | 1,800,000 | 1,890,000 | ||
Gates Global LLC, 6.25%, 1/15/2026 (n) | 1,500,000 | 1,550,625 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 2,534,000 | 2,914,871 | ||
$8,886,746 | ||||
Construction – 0.5% | ||||
Mattamy Group Corp., 5.25%, 12/15/2027 (n) | $ | 1,500,000 | $ 1,560,000 | |
Shea Homes LP/Shea Homes Funding Corp., 4.75%, 2/15/2028 (n) | 1,600,000 | 1,612,000 | ||
$3,172,000 | ||||
Consumer Services – 1.0% | ||||
Expedia Group, Inc., 3.25%, 2/15/2030 | $ | 1,950,000 | $ 2,004,797 | |
Match Group, Inc., 5%, 12/15/2027 (n) | 1,800,000 | 1,876,500 | ||
Meituan, 3.05%, 10/28/2030 (n) | 1,024,000 | 951,271 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 307,000 | 257,085 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 889,000 | 614,502 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 307,000 | 191,780 | ||
$5,895,935 | ||||
Containers – 0.3% | ||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | $ | 1,500,000 | $ 1,545,450 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Electronics – 0.6% | ||||
Broadcom, Inc., 4.3%, 11/15/2032 | $ | 1,442,000 | $ 1,605,625 | |
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 1,967,000 | 1,933,646 | ||
$3,539,271 | ||||
Emerging Market Quasi-Sovereign – 1.3% | ||||
DAE Funding LLC (United Arab Emirates), 3.375%, 3/20/2028 (n) | $ | 887,000 | $ 905,066 | |
Empresa Nacional del Petroleo (Republic of Chile), 3.45%, 9/16/2031 (n) | 1,070,000 | 1,015,162 | ||
Huarong Finance Co. Ltd. (People's Republic of China), 3.25%, 11/13/2024 | 1,035,000 | 979,369 | ||
Indian Railway Finance Corp., 2.8%, 2/10/2031 (n) | 1,041,000 | 1,002,436 | ||
Ipoteka Bank (Republic of Uzbekistan), 5.5%, 11/19/2025 | 1,087,000 | 1,126,404 | ||
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 3.75%, 6/23/2031 (n) | 1,168,000 | 1,144,631 | ||
Petroleos Mexicanos, 5.95%, 1/28/2031 | 1,353,000 | 1,331,081 | ||
$7,504,149 | ||||
Emerging Market Sovereign – 2.1% | ||||
Arab Republic of Egypt, 5.8%, 9/30/2027 (n) | $ | 1,210,000 | $ 1,173,700 | |
Dominican Republic, 4.5%, 1/30/2030 (n) | 1,018,000 | 1,030,735 | ||
Dominican Republic, 4.875%, 9/23/2032 (n) | 1,301,000 | 1,320,528 | ||
Government of Ukraine, GDP Linked Bond, 0%, 5/31/2040 | 1,864,000 | 1,961,935 | ||
Kingdom of Morocco, 3%, 12/15/2032 (n) | 1,058,000 | 1,003,386 | ||
Oriental Republic of Uruguay, 8.5%, 3/15/2028 | UYU | 32,942,000 | 772,212 | |
Republic of Chile, 5%, 10/01/2028 (n) | CLP | 710,000,000 | 825,571 | |
Republic of Cote d'Ivoire, 4.875%, 1/30/2032 (n) | EUR | 797,000 | 899,329 | |
Republic of Kenya, 8%, 5/22/2032 | $ | 1,516,000 | 1,646,649 | |
Republic of Romania, 2%, 4/14/2033 (n) | EUR | 712,000 | 769,572 | |
Republic of South Africa, 8.25%, 3/31/2032 | ZAR | 17,192,000 | 986,504 | |
$12,390,121 | ||||
Energy - Independent – 0.6% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 616,000 | $ 709,910 | |
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | 1,112,000 | 1,129,792 | ||
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 1,834,000 | 2,010,523 | ||
$3,850,225 | ||||
Energy - Integrated – 1.0% | ||||
Cenovus Energy, Inc., 3.75%, 2/15/2052 | $ | 2,700,000 | $ 2,732,130 | |
Eni S.p.A., 4%, 9/12/2023 (n) | 1,342,000 | 1,417,098 | ||
Eni S.p.A., 4.25%, 5/09/2029 (n) | 1,353,000 | 1,533,401 | ||
$5,682,629 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – 2.1% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.5%, 7/15/2025 | $ | 1,328,000 | $ 1,538,812 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | 2,285,000 | 2,421,946 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 2,342,000 | 2,403,848 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 1,823,000 | 1,805,021 | ||
Global Aircraft Leasing Co. Ltd., 6.5%,(6.5% cash or 7.25% PIK) 9/15/2024 (p) | 1,932,865 | 1,876,522 | ||
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n) | 1,692,000 | 1,698,768 | ||
Sunac China Holdings Ltd., 7.5%, 2/01/2024 | 1,057,000 | 782,128 | ||
$12,527,045 | ||||
Food & Beverages – 1.6% | ||||
Anheuser-Busch InBev Worldwide, Inc., 4.439%, 10/06/2048 | $ | 874,509 | $ 1,057,158 | |
Aramark Services, Inc., 5%, 2/01/2028 (n) | 1,000,000 | 1,022,500 | ||
Bacardi Ltd., 5.15%, 5/15/2038 (n) | 955,000 | 1,180,534 | ||
Central American Bottling Corp., 5.75%, 1/31/2027 (n) | 700,000 | 725,445 | ||
Indofood CBP, 3.541%, 4/27/2032 | 2,536,000 | 2,532,782 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 1,800,000 | 1,971,000 | ||
JBS USA Lux S.A./JBS USA Food Co./JBS USA Finance, Inc., 6.5%, 4/15/2029 | 782,000 | 865,088 | ||
$9,354,507 | ||||
Gaming & Lodging – 1.8% | ||||
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2030 | $ | 2,062,000 | $ 2,187,349 | |
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2031 | 400,000 | 426,336 | ||
Hilton Domestic Operating Co., Inc., 3.75%, 5/01/2029 (n) | 2,600,000 | 2,600,000 | ||
Marriott International, Inc., 5.75%, 5/01/2025 | 47,000 | 53,271 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 561,000 | 638,841 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 654,000 | 658,644 | ||
Marriott International, Inc., 2.75%, 10/15/2033 | 2,250,000 | 2,195,834 | ||
Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 2,000,000 | 2,066,100 | ||
$10,826,375 | ||||
Industrial – 0.2% | ||||
Arabian Centres Sukuk II Ltd., 5.625%, 10/07/2026 | $ | 936,000 | $ 974,881 | |
Insurance - Property & Casualty – 1.5% | ||||
Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | $ | 1,000,000 | $ 1,032,500 | |
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | 2,170,000 | 2,343,168 | ||
Aon Corp., 4.5%, 12/15/2028 | 2,224,000 | 2,572,129 | ||
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 2,201,000 | 2,494,440 | ||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 (n) | 452,000 | 466,507 | ||
$8,908,744 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Machinery & Tools – 0.4% | ||||
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 1,076,000 | $ 1,147,854 | |
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | 1,025,000 | 1,126,903 | ||
$2,274,757 | ||||
Major Banks – 3.0% | ||||
Bank of America Corp., 4.271% to 7/23/2028, FLR (LIBOR - 3mo. + 1.31%) to 7/23/2029 | $ | 579,000 | $ 651,151 | |
Bank of America Corp., 2.572%, 10/20/2032 | 2,325,000 | 2,329,711 | ||
Bank of New York Mellon Corp., 4.7% to 9/20/2025, FLR (CMT - 5yr. + 4.358%) to 9/20/2070 | 1,800,000 | 1,958,760 | ||
Barclays PLC, 4.375%, 1/12/2026 | 1,325,000 | 1,459,312 | ||
Credit Suisse Group AG, 6.5%, 8/08/2023 (n) | 299,000 | 325,551 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 562,000 | 572,207 | ||
Goldman Sachs Group, Inc., 2.65% to 10/21/2031, FLR (SOFR + 1.264%) to 10/21/2032 | 2,695,000 | 2,714,781 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2169 | 536,000 | 534,660 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 1,150,000 | 1,144,365 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR + 2.515%) to 5/13/2031 | 726,000 | 749,482 | ||
JPMorgan Chase & Co., 3.882% to 7/24/2037, FLR (LIBOR - 3mo. + 1.36%) to 7/24/2038 | 1,336,000 | 1,527,840 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 2,746,000 | 2,727,465 | ||
UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n) | 995,000 | 1,107,688 | ||
$17,802,973 | ||||
Medical & Health Technology & Services – 1.8% | ||||
DaVita, Inc., 4.625%, 6/01/2030 (n) | $ | 2,600,000 | $ 2,612,896 | |
New York Society for the Relief of the Ruptured & Crippled, 2.667%, 10/01/2050 | 1,768,000 | 1,683,239 | ||
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | 1,437,000 | 1,627,771 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 568,000 | 677,195 | ||
Syneos Health, Inc., 3.625%, 1/15/2029 (n) | 2,600,000 | 2,566,200 | ||
Tower Health, 4.451%, 2/01/2050 | 1,730,000 | 1,539,700 | ||
$10,707,001 | ||||
Metals & Mining – 0.6% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 662,000 | $ 650,705 | |
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 775,000 | 772,926 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 911,000 | 912,183 | ||
Novelis Corp., 3.25%, 11/15/2026 (n) | 250,000 | 249,375 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Metals & Mining – continued | ||||
Novelis Corp., 3.875%, 8/15/2031 (n) | $ | 1,000,000 | $ 976,300 | |
$3,561,489 | ||||
Midstream – 2.7% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 2,125,000 | $ 2,279,968 | |
Cheniere Corpus Christi Holdings LLC, 2.742%, 12/31/2039 (n) | 963,000 | 941,041 | ||
Enbridge, Inc., 3.125%, 11/15/2029 | 1,344,000 | 1,422,303 | ||
Enbridge, Inc., 2.5%, 8/01/2033 | 1,923,000 | 1,904,387 | ||
EQM Midstream Partners LP, 5.5%, 7/15/2028 | 1,000,000 | 1,101,430 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.625%, 3/31/2036 (n) | 1,498,000 | 1,459,377 | ||
MPLX LP, 4.5%, 4/15/2038 | 2,200,000 | 2,478,627 | ||
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 3,387,000 | 3,578,355 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 688,000 | 783,956 | ||
$15,949,444 | ||||
Mortgage-Backed – 0.1% | ||||
Fannie Mae, 6.5%, 5/01/2031 | $ | 10,294 | $ 11,578 | |
Fannie Mae, 3%, 2/25/2033 (i) | 289,704 | 28,516 | ||
Fannie Mae, 5.5%, 9/01/2034 - 11/01/2036 | 38,358 | 44,544 | ||
Fannie Mae, 6%, 11/01/2034 | 106,234 | 124,671 | ||
Fannie Mae, UMBS, 2.5%, 3/01/2050 | ��� 61,483 | 63,243 | ||
Freddie Mac, 0.882%, 4/25/2024 (i) | 82,443 | 1,529 | ||
Ginnie Mae, 3%, 9/20/2047 | 128,727 | 134,443 | ||
$408,524 | ||||
Municipals – 2.0% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, AAC, 5.14%, 12/01/2036 | $ | 1,205,000 | $ 1,280,517 | |
Escambia County, FL, Health Facilities Authority Rev. (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 1,730,000 | 1,824,534 | ||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 1,155,000 | 1,463,921 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023 | 2,500,000 | 2,478,151 | ||
Port Beaumont, TX, Industrial Development Authority Facility Taxable Rev. (Jefferson Gulf Coast Energy Project), “B”, 4.1%, 1/01/2028 (n) | 2,755,000 | 2,711,183 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2042 (a)(d) | 30,000 | 29,325 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5%, 7/01/2018 (a)(d) | 455,000 | 440,212 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Municipals – continued | ||||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 4.55%, 7/01/2040 | $ | 1,326,000 | $ 1,377,515 | |
$11,605,358 | ||||
Natural Gas - Distribution – 0.2% | ||||
ENN Clean Energy International Investment Ltd., 3.375%, 5/12/2026 (n) | $ | 917,000 | $ 908,285 | |
Oils – 0.2% | ||||
FS Luxembourg S.à r.l., 10%, 12/15/2025 (n) | $ | 1,013,000 | $ 1,116,833 | |
Other Banks & Diversified Financials – 0.5% | ||||
Bank Hapoalim B.M., 3.255% to 1/21/2027, FLR (CMT - 5yr. + 2.155%) to 1/21/2032 (n) | $ | 904,000 | $ 902,888 | |
Mizrahi Tefahot Bank Ltd., 3.077% to 4/07/2026, FLR (CMT - 5yr. + 2.25%) to 4/07/2031 (n) | 872,000 | 870,256 | ||
Uzbek Industrial and Construction Bank, 5.75%, 12/02/2024 | 1,068,000 | 1,104,205 | ||
$2,877,349 | ||||
Pharmaceuticals – 1.0% | ||||
Jazz Securities DAC, 4.375%, 1/15/2029 (n) | $ | 3,000,000 | $ 3,082,500 | |
Organon Finance 1 LLC, 4.125%, 4/30/2028 (n) | 3,000,000 | 3,041,250 | ||
$6,123,750 | ||||
Printing & Publishing – 0.2% | ||||
Cimpress N.V., 7%, 6/15/2026 (n) | $ | 1,000,000 | $ 1,038,750 | |
Real Estate - Apartment – 0.4% | ||||
Mid-America Apartments LP, 2.75%, 3/15/2030 | $ | 2,266,000 | $ 2,345,161 | |
Real Estate - Healthcare – 0.1% | ||||
MPT Operating Partnership LP/MPT Financial Co., REIT, 5%, 10/15/2027 | $ | 805,000 | $ 847,424 | |
Real Estate - Office – 0.2% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 1,504,000 | $ 1,497,675 | |
Retailers – 0.5% | ||||
Alimentation Couche-Tard, Inc., 2.95%, 1/25/2030 (n) | $ | 2,180,000 | $ 2,261,738 | |
MercadoLibre, Inc., 2.375%, 1/14/2026 | 852,000 | 828,570 | ||
$3,090,308 | ||||
Specialty Chemicals – 0.3% | ||||
Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 1,500,000 | $ 1,563,750 | |
Supranational – 0.2% | ||||
Corporacion Andina de Fomento, 4.375%, 6/15/2022 | $ | 1,290,000 | $ 1,317,720 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Telecommunications - Wireless – 1.5% | ||||
American Tower Corp., REIT, 3.55%, 7/15/2027 | $ | 1,237,000 | $ 1,334,020 | |
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n) | 1,582,000 | 1,546,579 | ||
Crown Castle International Corp., 4.15%, 7/01/2050 | 1,638,000 | 1,893,981 | ||
SBA Communications Corp., 3.875%, 2/15/2027 | 2,000,000 | 2,062,560 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 1,899,000 | 2,169,452 | ||
$9,006,592 | ||||
Tobacco – 0.3% | ||||
B.A.T. Capital Corp., 3.215%, 9/06/2026 | $ | 1,869,000 | $ 1,970,516 | |
Transportation - Services – 0.5% | ||||
Delhi International Airport Private Ltd., 6.125%, 10/31/2026 | $ | 1,046,000 | $ 1,048,318 | |
Element Fleet Management Corp., 1.6%, 4/06/2024 (n) | 823,000 | 828,594 | ||
India Airport Infrastructure, 6.25%, 10/25/2025 | 889,000 | 880,110 | ||
$2,757,022 | ||||
U.S. Treasury Obligations – 26.6% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 | $ | 17,200,000 | $ 15,521,656 | |
U.S. Treasury Bonds, 1.75%, 8/15/2041 | 3,600,000 | 3,465,563 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 (f) | 7,646,000 | 8,372,967 | ||
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 16,026,900 | 17,535,682 | ||
U.S. Treasury Notes, 0.125%, 12/31/2022 | 43,600,000 | 43,543,797 | ||
U.S. Treasury Notes, 0.25%, 9/30/2023 | 40,200,000 | 40,036,687 | ||
U.S. Treasury Notes, 0.25%, 9/30/2025 | 27,300,000 | 26,495,930 | ||
U.S. Treasury Notes, 0.875%, 6/30/2026 | 3,250,000 | 3,207,344 | ||
$ 158,179,626 | ||||
Utilities - Electric Power – 2.8% | ||||
AES Gener S.A., 6.35% to 4/07/2025, FLR (CMT - 5yr. + 4.917%) to 4/07/2030, FLR (CMT - 5yr. + 5.167%) to 4/07/2045, FLR (CMT - 5yr. + 5.917%) to 10/07/2079 (n) | $ | 760,000 | $ 787,558 | |
AES Panama Generation Holdings SRL, 4.375%, 5/31/2030 (n) | 1,200,000 | 1,237,416 | ||
Calpine Corp., 3.75%, 3/01/2031 (n) | 2,600,000 | 2,496,026 | ||
Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 2,915,000 | 2,885,850 | ||
FirstEnergy Corp., 5.35%, 7/15/2047 | 2,460,000 | 2,985,296 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 359,000 | 366,942 | ||
NextEra Energy, Inc., 4.5%, 9/15/2027 (n) | 1,800,000 | 1,925,640 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 614,000 | 618,736 | ||
Pacific Gas & Electric Co., 3.5%, 8/01/2050 | 2,250,000 | 2,138,570 | ||
ReNew Wind Energy AP2/ReNew Power Private Ltd., 4.5%, 7/14/2028 (n) | 901,000 | 915,936 | ||
$16,357,970 | ||||
Total Bonds (Identified Cost, $558,714,866) | $ 566,034,773 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 0.0% | ||||
Construction – 0.0% | ||||
ICA Tenedora S.A. de C.V. (a)(u) (Identified Cost, $0) | 36,995 | $ 30,548 | ||
Investment Companies (h) – 3.5% | ||||
Money Market Funds – 3.5% | ||||
MFS Institutional Money Market Portfolio, 0.04% (v) (Identified Cost, $20,877,994) | 20,877,994 | $ 20,877,994 | ||
Other Assets, Less Liabilities – 1.2% | 7,384,657 | |||
Net Assets – 100.0% | $ 594,327,972 |
(a) | Non-income producing security. | |||
(d) | In default. | |||
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $20,877,994 and $566,065,321, respectively. | |||
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $240,929,150, representing 40.5% of net assets. | |||
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
(u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
UMBS | Uniform Mortgage-Backed Security |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
CLP | Chilean Peso |
EUR | Euro |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
MYR | Malaysian Ringgit |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
MYR | 4,289,000 | USD | 1,027,872 | Barclays Bank PLC | 12/09/2021 | $6,154 |
USD | 1,057,447 | ZAR | 16,079,429 | Deutsche Bank AG | 11/08/2021 | 5,466 |
$11,620 | ||||||
Liability Derivatives | ||||||
INR | 81,927,000 | USD | 1,102,355 | Goldman Sachs International | 12/14/2021 | $(13,602) |
USD | 1,711,968 | EUR | 1,479,383 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (1,557) |
USD | 1,048,494 | IDR | 15,010,229,468 | Citibank N.A. | 11/22/2021 | (8,948) |
$(24,107) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Bond | Long | USD | 172 | $33,781,875 | December – 2021 | $382,054 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 205 | $44,946,250 | December – 2021 | $(186,513) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 91 | 13,197,844 | December – 2021 | (40,548) |
$(227,061) |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $558,714,866) | $566,065,321 |
Investments in affiliated issuers, at value (identified cost, $20,877,994) | 20,877,994 |
Cash | 97,382 |
Foreign currency, at value (identified cost, $58) | 57 |
Receivables for | |
Forward foreign currency exchange contracts | 11,620 |
Net daily variation margin on open futures contracts | 116,375 |
Fund shares sold | 4,889,827 |
Interest and dividends | 3,307,083 |
Receivable from investment adviser | 29,199 |
Total assets | $595,394,858 |
Liabilities | |
Payables for | |
Distributions | $23,257 |
Forward foreign currency exchange contracts | 24,107 |
Fund shares reacquired | 776,038 |
Payable to affiliates | |
Administrative services fee | 967 |
Shareholder servicing costs | 129,501 |
Distribution and service fees | 11,077 |
Payable for independent Trustees' compensation | 15 |
Accrued expenses and other liabilities | 101,924 |
Total liabilities | $1,066,886 |
Net assets | $594,327,972 |
Net assets consist of | |
Paid-in capital | $581,730,497 |
Total distributable earnings (loss) | 12,597,475 |
Net assets | $594,327,972 |
Shares of beneficial interest outstanding | 84,417,700 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $329,668,342 | 46,790,052 | $7.05 |
Class B | 4,364,842 | 623,823 | 7.00 |
Class C | 14,460,639 | 2,071,419 | 6.98 |
Class I | 159,393,230 | 22,660,346 | 7.03 |
Class R6 | 86,440,919 | 12,272,060 | 7.04 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $7.36 [100 / 95.75 x $7.05]. On sales of $100,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I and R6. |
Net investment income (loss) | |
Income | |
Interest | $13,018,771 |
Dividends | 25,428 |
Dividends from affiliated issuers | 6,613 |
Foreign taxes withheld | (5,847) |
Total investment income | $13,044,965 |
Expenses | |
Management fee | $2,375,568 |
Distribution and service fees | 924,532 |
Shareholder servicing costs | 517,550 |
Administrative services fee | 71,855 |
Independent Trustees' compensation | 8,720 |
Custodian fee | 52,837 |
Shareholder communications | 39,789 |
Audit and tax fees | 72,289 |
Legal fees | 2,654 |
Miscellaneous | 152,118 |
Total expenses | $4,217,912 |
Fees paid indirectly | (209) |
Reduction of expenses by investment adviser and distributor | (1,047,184) |
Net expenses | $3,170,519 |
Net investment income (loss) | $9,874,446 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $7,815,261 |
Futures contracts | 874,424 |
Forward foreign currency exchange contracts | (155,124) |
Foreign currency | (105,194) |
Net realized gain (loss) | $8,429,367 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(7,235,763) |
Futures contracts | 44,930 |
Forward foreign currency exchange contracts | (4,003) |
Translation of assets and liabilities in foreign currencies | (2,482) |
Net unrealized gain (loss) | $(7,197,318) |
Net realized and unrealized gain (loss) | $1,232,049 |
Change in net assets from operations | $11,106,495 |
Year ended | ||
10/31/21 | 10/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $9,874,446 | $9,646,083 |
Net realized gain (loss) | 8,429,367 | 7,433,849 |
Net unrealized gain (loss) | (7,197,318) | 5,374,993 |
Change in net assets from operations | $11,106,495 | $22,454,925 |
Total distributions to shareholders | $(11,984,817) | $(10,203,450) |
Change in net assets from fund share transactions | $178,788,635 | $100,754,661 |
Total change in net assets | $177,910,313 | $113,006,136 |
Net assets | ||
At beginning of period | 416,417,659 | 303,411,523 |
At end of period | $594,327,972 | $416,417,659 |
Class A | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $7.04 | $6.80 | $6.27 | $6.64 | $6.58 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.14 | $0.18 | $0.20 | $0.20 | $0.21(c) |
Net realized and unrealized gain (loss) | 0.04 | 0.25 | 0.53 | (0.38) | 0.08 |
Total from investment operations | $0.18 | $0.43 | $0.73 | $(0.18) | $0.29 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.19) | $(0.20) | $(0.19) | $(0.23) |
From net realized gain | (0.01) | — | — | — | — |
Total distributions declared to shareholders | $(0.17) | $(0.19) | $(0.20) | $(0.19) | $(0.23) |
Net asset value, end of period (x) | $7.05 | $7.04 | $6.80 | $6.27 | $6.64 |
Total return (%) (r)(s)(t)(x) | 2.67 | 6.46 | 11.86 | (2.77) | 4.44(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f)(h) | 0.95 | 0.99 | 1.09 | 1.09 | 1.12(c) |
Expenses after expense reductions (f)(h) | 0.73 | 0.76 | 1.02 | 1.04 | 1.04(c) |
Net investment income (loss) | 2.02 | 2.64 | 3.05 | 3.04 | 3.18(c) |
Portfolio turnover | 64 | 95 | 103 | 66 | 69 |
Net assets at end of period (000 omitted) | $329,668 | $250,293 | $210,404 | $191,061 | $207,268 |
Class B | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $6.99 | $6.76 | $6.22 | $6.60 | $6.54 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.09 | $0.13 | $0.15 | $0.15 | $0.16(c) |
Net realized and unrealized gain (loss) | 0.04 | 0.24 | 0.54 | (0.39) | 0.08 |
Total from investment operations | $0.13 | $0.37 | $0.69 | $(0.24) | $0.24 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.11) | $(0.14) | $(0.15) | $(0.14) | $(0.18) |
From net realized gain | (0.01) | — | — | — | — |
Total distributions declared to shareholders | $(0.12) | $(0.14) | $(0.15) | $(0.14) | $(0.18) |
Net asset value, end of period (x) | $7.00 | $6.99 | $6.76 | $6.22 | $6.60 |
Total return (%) (r)(s)(t)(x) | 1.91 | 5.54 | 11.27 | (3.63) | 3.67(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f)(h) | 1.70 | 1.74 | 1.84 | 1.84 | 1.87(c) |
Expenses after expense reductions (f)(h) | 1.48 | 1.51 | 1.78 | 1.80 | 1.80(c) |
Net investment income (loss) | 1.30 | 1.92 | 2.31 | 2.28 | 2.48(c) |
Portfolio turnover | 64 | 95 | 103 | 66 | 69 |
Net assets at end of period (000 omitted) | $4,365 | $6,402 | $11,016 | $13,331 | $18,387 |
Class C | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $6.97 | $6.74 | $6.21 | $6.58 | $6.52 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.09 | $0.13 | $0.15 | $0.15 | $0.16(c) |
Net realized and unrealized gain (loss) | 0.04 | 0.24 | 0.53 | (0.38) | 0.08 |
Total from investment operations | $0.13 | $0.37 | $0.68 | $(0.23) | $0.24 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.11) | $(0.14) | $(0.15) | $(0.14) | $(0.18) |
From net realized gain | (0.01) | — | — | — | — |
Total distributions declared to shareholders | $(0.12) | $(0.14) | $(0.15) | $(0.14) | $(0.18) |
Net asset value, end of period (x) | $6.98 | $6.97 | $6.74 | $6.21 | $6.58 |
Total return (%) (r)(s)(t)(x) | 1.91 | 5.55 | 11.12 | (3.55) | 3.67(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f)(h) | 1.70 | 1.74 | 1.84 | 1.84 | 1.87(c) |
Expenses after expense reductions (f)(h) | 1.48 | 1.51 | 1.78 | 1.80 | 1.80(c) |
Net investment income (loss) | 1.30 | 1.90 | 2.31 | 2.26 | 2.48(c) |
Portfolio turnover | 64 | 95 | 103 | 66 | 69 |
Net assets at end of period (000 omitted) | $14,461 | $19,035 | $17,783 | $19,834 | $32,196 |
Class I | Year ended | ||||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $7.03 | $6.79 | $6.26 | $6.63 | $6.58 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.16 | $0.20 | $0.21 | $0.21 | $0.22(c) |
Net realized and unrealized gain (loss) | 0.03 | 0.25 | 0.54 | (0.38) | 0.07 |
Total from investment operations | $0.19 | $0.45 | $0.75 | $(0.17) | $0.29 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.18) | $(0.21) | $(0.22) | $(0.20) | $(0.24) |
From net realized gain | (0.01) | — | — | — | — |
Total distributions declared to shareholders | $(0.19) | $(0.21) | $(0.22) | $(0.20) | $(0.24) |
Net asset value, end of period (x) | $7.03 | $7.03 | $6.79 | $6.26 | $6.63 |
Total return (%) (r)(s)(t)(x) | 2.78 | 6.73 | 12.15 | (2.54) | 4.54(c) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (f)(h) | 0.70 | 0.74 | 0.84 | 0.84 | 0.87(c) |
Expenses after expense reductions (f)(h) | 0.48 | 0.51 | 0.77 | 0.80 | 0.80(c) |
Net investment income (loss) | 2.26 | 2.86 | 3.28 | 3.25 | 3.30(c) |
Portfolio turnover | 64 | 95 | 103 | 66 | 69 |
Net assets at end of period (000 omitted) | $159,393 | $114,592 | $50,067 | $46,277 | $90,086 |
Class R6 | Year ended | |||
10/31/21 | 10/31/20 | 10/31/19 | 10/31/18(i) | |
Net asset value, beginning of period | $7.04 | $6.80 | $6.27 | $6.48 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.16 | $0.20 | $0.22 | $0.15 |
Net realized and unrealized gain (loss) | 0.04 | 0.25 | 0.53 | (0.22) |
Total from investment operations | $0.20 | $0.45 | $0.75 | $(0.07) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.19) | $(0.21) | $(0.22) | $(0.14) |
From net realized gain | (0.01) | — | — | — |
Total distributions declared to shareholders | $(0.20) | $(0.21) | $(0.22) | $(0.14) |
Net asset value, end of period (x) | $7.04 | $7.04 | $6.80 | $6.27 |
Total return (%) (r)(s)(t)(x) | 2.87 | 6.81 | 12.22 | (1.03)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f)(h) | 0.61 | 0.66 | 0.76 | 0.72(a) |
Expenses after expense reductions (f)(h) | 0.40 | 0.43 | 0.70 | 0.71(a) |
Net investment income (loss) | 2.28 | 2.95 | 3.37 | 3.53(a) |
Portfolio turnover | 64 | 95 | 103 | 66 |
Net assets at end of period (000 omitted) | $86,441 | $26,095 | $14,141 | $12,798 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(h) | For financial highlights through October 31, 2018, in addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying affiliated funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying affiliated funds have varied expense and fee levels and the fund may own different proportions of the underlying affiliated funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
(i) | For Class R6, the period is from the class inception, March 2, 2018, through the stated period end. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
Mexico | $— | $— | $30,548 | $30,548 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 158,179,626 | — | 158,179,626 |
Non - U.S. Sovereign Debt | — | 21,211,990 | — | 21,211,990 |
Municipal Bonds | — | 11,605,358 | — | 11,605,358 |
U.S. Corporate Bonds | — | 165,358,101 | — | 165,358,101 |
Residential Mortgage-Backed Securities | — | 1,724,665 | — | 1,724,665 |
Commercial Mortgage-Backed Securities | — | 49,986,705 | — | 49,986,705 |
Asset-Backed Securities (including CDOs) | — | 85,471,817 | — | 85,471,817 |
Foreign Bonds | — | 72,496,511 | — | 72,496,511 |
Mutual Funds | 20,877,994 | — | — | 20,877,994 |
Total | $20,877,994 | $566,034,773 | $30,548 | $586,943,315 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $382,054 | $— | $— | $382,054 |
Futures Contracts – Liabilities | (227,061) | — | — | (227,061) |
Forward Foreign Currency Exchange Contracts – Assets | — | 11,620 | — | 11,620 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (24,107) | — | (24,107) |
Equity Securities | |
Balance as of 10/31/20 | $— |
Transfers into level 3 | 30,548 |
Balance as of 10/31/21 | $30,548 |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $382,054 | $(227,061) |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 11,620 | (24,107) |
Total | $393,674 | $(251,168) |
(a) | Values presented in this table for futures contracts correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts is separately reported within the Statement of Assets and Liabilities. |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $874,424 | $ — |
Foreign Exchange | — | (155,124) |
Total | $874,424 | $(155,124) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $44,930 | $ — |
Foreign Exchange | — | (4,003) |
Total | $44,930 | $(4,003) |
Year ended 10/31/21 | Year ended 10/31/20 | |
Ordinary income (including any short-term capital gains) | $11,984,817 | $10,203,450 |
As of 10/31/21 | |
Cost of investments | $581,099,446 |
Gross appreciation | 10,817,713 |
Gross depreciation | (4,831,338) |
Net unrealized appreciation (depreciation) | $ 5,986,375 |
Undistributed ordinary income | 2,389,105 |
Undistributed long-term capital gain | 5,253,435 |
Other temporary differences | (1,031,440) |
Total distributable earnings (loss) | $ 12,597,475 |
Year ended 10/31/21 | Year ended 10/31/20 | ||
Class A | $7,019,416 | $6,400,848 | |
Class B | 94,813 | 175,744 | |
Class C | 287,765 | 382,447 | |
Class I | 3,437,213 | 2,597,372 | |
Class R6 | 1,145,610 | 647,039 | |
Total | $11,984,817 | $10,203,450 |
Up to $1 billion | 0.50% |
In excess of $1 billion and up to $2.5 billion | 0.45% |
In excess of $2.5 billion | 0.40% |
Classes | ||||
A | B | C | I | R6 |
0.73% | 1.48% | 1.48% | 0.48% | 0.40% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 710,930 |
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 52,951 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 160,651 |
Total Distribution and Service Fees | $924,532 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended October 31, 2021 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. For the year ended October 31, 2021, this rebate amounted to $1,242 and $11 for Class A and Class C, respectively, and is included in the reduction of total expenses in the Statement of Operations. |
Amount | |
Class A | $25,247 |
Class B | 5,067 |
Class C | 1,045 |
Purchases | Sales | |
U.S. Government securities | $232,477,790 | $126,999,738 |
Non-U.S. Government securities | 224,262,698 | 170,541,066 |
Year ended 10/31/21 | Year ended 10/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 16,931,075 | $120,018,762 | 10,812,634 | $74,400,363 | |
Class B | 97,969 | 691,741 | 82,571 | 557,199 | |
Class C | 507,042 | 3,565,791 | 1,079,461 | 7,353,599 | |
Class I | 15,858,131 | 112,395,035 | 17,789,687 | 121,281,506 | |
Class R6 | 9,639,930 | 68,241,651 | 2,428,151 | 16,478,416 | |
43,034,147 | $304,912,980 | 32,192,504 | $220,071,083 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 952,064 | $6,758,338 | 885,856 | $6,100,278 | |
Class B | 12,815 | 90,461 | 23,750 | 161,862 | |
Class C | 40,594 | 285,791 | 53,673 | 365,908 | |
Class I | 466,802 | 3,306,346 | 353,145 | 2,433,029 | |
Class R6 | 161,017 | 1,141,595 | 93,697 | 646,342 | |
1,633,292 | $11,582,531 | 1,410,121 | $9,707,419 | ||
Shares reacquired | |||||
Class A | (6,654,552) | $(47,185,184) | (7,065,398) | $(48,103,177) | |
Class B | (403,026) | (2,841,010) | (820,875) | (5,448,590) | |
Class C | (1,205,705) | (8,494,252) | (1,041,719) | (7,083,960) | |
Class I | (9,971,490) | (70,431,599) | (9,205,266) | (62,292,980) | |
Class R6 | (1,236,935) | (8,754,831) | (892,540) | (6,095,134) | |
(19,471,708) | $(137,706,876) | (19,025,798) | $(129,023,841) | ||
Net change | |||||
Class A | 11,228,587 | $79,591,916 | 4,633,092 | $32,397,464 | |
Class B | (292,242) | (2,058,808) | (714,554) | (4,729,529) | |
Class C | (658,069) | (4,642,670) | 91,415 | 635,547 | |
Class I | 6,353,443 | 45,269,782 | 8,937,566 | 61,421,555 | |
Class R6 | 8,564,012 | 60,628,415 | 1,629,308 | 11,029,624 | |
25,195,731 | $178,788,635 | 14,576,827 | $100,754,661 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $8,188,509 | $422,029,443 | $409,339,958 | $— | $— | $20,877,994 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $6,613 | $— |
MFS Series Trust VIII
December 15, 2021
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Robert J. Manning (k) (age 58) | Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Non-Executive Chairman (since January 2021); Director; Chairman of the Board; Executive Chairman (January 2017-2020); Co-Chief Executive Officer (2015-2016) | N/A | |||||
Michael W. Roberge (k) (age 55) | Trustee | January 2021 | 135 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; President (until December 2018); Chief Investment Officer (until December 2018); Co-Chief Executive Officer (until December 2016) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 67) | Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking, Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016) | Alpha-En Corporation, Director (2016-2019) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 47) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (until January 2017) | ||||
Brian E. Langenfeld (k) (age 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 50) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 |
Portfolio Manager(s) | |
Neeraj Arora Philipp Burgener David Cole Alexander Mackey Joshua Marston Michael Skatrud |
FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
• Social Security number and account balances | |
• Account transactions and transaction history | |
• Checking account information and wire transfer instructions | |
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes – to offer our products and services to you | No | We don't share |
For joint marketing with other financial companies | No | We don't share |
For our affiliates' everyday business purposes – information about your transactions and experiences | No | We don't share |
For our affiliates' everyday business purposes – information about your creditworthiness | No | We don't share |
For nonaffiliates to market to you | No | We don't share |
Questions? | Call 800-225-2606 or go to mfs.com. |
Who we are | |
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | |
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. |
How does MFS collect my personal information? | We collect your personal information, for example, when you |
• open an account or provide account information | |
• direct us to buy securities or direct us to sell your securities | |
• make a wire transfer | |
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can't I limit all sharing? | Federal law gives you the right to limit only |
• sharing for affiliates' everyday business purposes – information about your creditworthiness | |
• affiliates from using your information to market to you | |
• sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
• MFS doesn't jointly market. |
Other important information |
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
Item 1(b): |
Not applicable
ITEM 2. | CODE OF ETHICS. |
The Registrant has adopted a Code of Ethics (the “Code”) pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in the Code that relates to an element of the Code’s definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
A copy of the Code is filed as an exhibit to this Form N-CSR.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Messrs. Steven E. Buller, James Kilman, and Clarence Otis, Jr. and Ms. Maryanne L. Roepke, members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of “audit committee financial expert” as such term is defined in Form N-CSR. In addition, Messrs. Buller, Kilman, and Otis and Ms. Roepke are “independent” members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to certain series of the Registrant and Ernst & Young LLP (“E&Y”) to serve in the same capacity to certain other series of the Registrant (each a “Fund” and collectively the “Funds”). The tables below set forth the audit fees billed to each Fund as well as fees for non-audit services provided to each Fund and/or to each Fund’s investment adviser, Massachusetts Financial Services Company (“MFS”), and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Fund (“MFS Related Entities”).
For the fiscal years ended October 31, 2021 and 2020, audit fees billed to each Fund by Deloitte and E&Y were as follows:
Audit Fees | ||||||||
2021 | 2020 | |||||||
Fees billed by Deloitte: | ||||||||
MFS Global Growth Fund | 63,229 | 62,367 |
Audit Fees | ||||||||
2021 | 2020 | |||||||
Fees billed by E&Y: | ||||||||
MFS Income Fund | 59,857 | 59,041 |
For the fiscal years ended October 31, 2021 and 2020, fees billed by Deloitte and E&Y for audit-related, tax and other services provided to each Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS Global Growth Fund | 0 | 0 | 7,066 | 6,824 | 0 | 0 |
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS and MFS Related Entities of MFS Global Growth Fund* | 0 | 0 | 0 | 0 | 5,390 | 3,790 |
Aggregate Fees for Non-audit Services | ||||||||
2021 | 2020 | |||||||
Fees Billed by Deloitte: | ||||||||
To MFS Global Growth Fund, MFS and MFS Related Entities# | 12,456 | 905,964 |
Audit-Related Fees1 | Tax Fees2 | All Other Fees4 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fees billed by E&Y: | ||||||||||||||||||||||||
To MFS Income Fund | 0 | 0 | 10,943 | 10,795 | 1,089 | 1,079 |
Audit-Related Fees1 | Tax Fees2 | All Other Fees4 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fees billed by E&Y: | ||||||||||||||||||||||||
To MFS and MFS Related Entities of MFS Income Fund* | 1,663,649 | 1,790,828 | 0 | 0 | 110,620 | 104,750 |
Aggregate Fees for Non-audit Services | ||||||||
2021 | 2020 | |||||||
Fees Billed by E&Y: | ||||||||
To MFS Income Fund, MFS and MFS Related Entities# | 2,003,001 | 2,118,183 |
* | This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Funds (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex). |
# | This amount reflects the aggregate fees billed by Deloitte or E&Y, as the case may be, for non-audit services rendered to the Funds and for non-audit services rendered to MFS and the MFS Related Entities. |
1 | The fees included under “Audit-Related Fees” are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under ‘‘Audit Fees,’’ including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews. |
2 | The fees included under “Tax Fees” are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews and tax distribution and analysis. |
3 | The fees included under “All Other Fees” are fees for products and services provided by Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees”. |
4 | The fees included under “All Other Fees” are fees for products and services provided by E&Y other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees,” including fees for services related to review of internal controls and review of Rule 38a-1 compliance program. |
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Funds and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f):
Not applicable.
Item 4(h):
The Registrant’s Audit Committee has considered whether the provision by a Registrant’s independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant’s principal auditors.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
ITEM 6. | INVESTMENTS |
A schedule of investments of each series of the Registrant is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to the Registrant.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report on Form N-CSR, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
(b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
ITEM 13. | EXHIBITS. |
(a) | (1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Attached hereto as EX-99.COE. | ||
(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto as EX-99.302CERT. | |||
(3) | Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. | |||
(4) | Change in the registrant’s independent public accountant. Not applicable. | |||
(b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT. |
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): MFS SERIES TRUST VIII
By (Signature and Title)* | /S/ DAVID L. DILORENZO | |
David L. DiLorenzo, President |
Date: December 15, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /S/ DAVID L. DILORENZO | |
David L. DiLorenzo, President (Principal Executive Officer) |
Date: December 15, 2021
By (Signature and Title)* | /S/ JAMES O. YOST | |
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: December 15, 2021
* | Print name and title of each signing officer under his or her signature. |